Shibarium’s Struggles
Shibarium, the highly anticipated layer-2 solution for the SHIB army, finally became functional on Aug. 28, following a rocky launch plagued by technical issues that drew scorn from the broader cryptocurrency community. The launch promised a new era of efficiency for SHIB holders who had eagerly awaited this solution for over a year.
However, recent data paints a troubling picture of Shibarium’s current state, with a steep decline in user engagement and network activity levels reminiscent of its early days of operation.
Shib Name Service (SNS) Launch
The decline in new address counts on the chain appears to be closely tied to the drop in daily transactions. This trend persists despite the introduction of Shiba Inu’s “Shib Name Service” (SNS) on Oct. 30. SNS, a decentralized naming service, allows users to create human-readable addresses for their Shibarium wallets. While the SNS launch aimed to enhance user experience and accessibility, it has not been able to reverse the declining user engagement on the network.
Impact On BONE Price
Shibarium’s struggles are not limited to user engagement; they are also affecting the price of the native token, BONE. As of the latest data from CoinGecko, the current price of BONE stands at $0.734137, with a 4.0% increase in the last 24 hours and a 2.5% rise over the past week. On the token’s spot market, most participants have been distributing their BONE holdings, which is evident from the momentum indicators on a 24-hour chart. Selling pressure is outweighing accumulation, which is concerning for the token’s future value.
Hot Take: Shibarium’s Future
Data from Shibariumscan.io reveals a significant drop in user engagement and transactions within Shibarium since its launch. The introduction of Shib Name Service (SNS) did not reverse this trend either. The declining user base directly impacts BONE’s value, and selling pressure is dominating the market. To regain its footing, Shibarium will need to address technical issues and improve user experience to regain trust and enthusiasm among its user base.
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